A day after FM Nirmala Sitharaman announced a Rs. 1.70 Lakh Crore package aimed at providing necessities for those hit by the Coronavirus badly, the RBI joins the move.
RBI’s Governor Shaktikanta Das announced a moratorium of 3 months on all EMI and loan payments.
Along with this the RBI Governor predicted a big recession coming to the word and said that India won’t be left isolated in this.
Announcing the move the RBI governor said “All commercial, regional, rural, NBFCs and small banks are being permitted to allow a 3-month moratorium on payment of installments in respect of all term loan EMIs on outstanding on March 31”
This means for next 3 months no EMI would be deducted form account of those with an outstanding loan and this won’t even have an effect on the credit score of the borrower. EMIs would resume after the moratorium is over.
Along with this a 3 month moratorium on interest payments on working capital loans was also announced by the RBI Governor.
This comes as a big relief for those with an outstanding loan especially the self employed whose businesses have been completely shut due to the lockdown.
Along with this move, the RBI Governor also announced some of the major policy changes including a cut in reverse repo rate and CRR for banks. The measures have come just after Moody’s Investor Service has cut India’s growth to 2.5% from 5.3% for the year 2020.
So far, 5,32,761 cases of Corona have been confirmed around the world and 24,093 deaths have been reported. India has reported a total number of 724 cases of the virus with 17 deaths.
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